Part 5 -
Library Capital Facilities Districts

24-90-502. Legislative declaration.
The general assembly finds and declares that the organization of library capital
facilities districts within library districts of the state, having the purposes
and powers provided in this part 5, will serve a public purpose, will promote
the health, safety, prosperity, security, and general welfare of the residents
of said library districts and facilities districts, property owners within said
library districts and facilities districts, and the people of the state
generally, will promote the continued vitality of library services within
library districts, and will be of special benefit to property located within the
boundaries of any such facilities district created pursuant to this part 5.

24-90-503. Definitions. As
used in this part 5, unless the context otherwise requires:

(1) "Board" means the board of
trustees of a facilities district created pursuant to this part 5.

(2) "Facilities district" means a
library capital facilities district organized by a library district pursuant to
this part 5 to provide library capital facilities within a library capital
facilities area.

(3) "Governing body" for the purposes
of this part 5, means the board of trustees of a library district forming an
area pursuant to this part 5.

(4) "Library capital facilities"
means any real or personal property, improvement, or facility, including,
without limitation, land, buildings, site improvements, equipment, furnishings,
or collections, that are directly related to any service that a library district
is authorized to provide, together with any necessary costs related to the
acquisition, construction, installation, operation, or maintenance of such
property, improvement, or facility. (

5) "Library capital facilities area"
means the geographical division within a library district that is described in
the resolution establishing a facilities district pursuant to this part 5.
Notwithstanding any provision in this subsection (5) to the contrary, the
library capital facility area may include a location designated by the library
district, after public notice and hearing, as a location for the siting of new
library capital facilities.

(6) "Library district" has the same
meaning as set forth in section 24-90-103 (6).

(7) "Net effective interest rate"
means the net interest cost of securities divided by the sum of the products
derived by multiplying the principal amount of the securities maturing on each
maturity date by the number of years from their date to their respective
maturities. In all cases, the net effective interest rate shall be computed
without regard to any option of redemption prior to the designated maturity
dates of the securities.

(8) "Net interest cost" means the
total amount of interest to accrue on securities from their date to their
respective maturities, less the amount of any premium above par, or plus the
amount of any discount below par, at which said bonds are being or have been
sold. In all cases, the net interest cost shall be computed without regard to
any option of redemption prior to the designated maturity dates of the
securities.

24-90-504. Authority of governing
body. The board of trustees of the library district as the governing body of
said district is hereby vested with jurisdiction, power, and authority to
establish one or more facilities districts within the boundaries of the library
district in which the library capital facilities are to be acquired,
constructed, installed, operated, or maintained in accordance with the
requirements of this part 5.

24-90-505. Organization -
preliminary resolution. (1) The organization of a facilities district shall
commence with a preliminary resolution of the board.

(2) The preliminary resolution
required by subsection (1) of this section shall specify:

(a) The name of the
proposed facilities district, which shall include a descriptive name of such
district along with the words library capital facility district;

(b) A general
description of the boundaries of the proposed library capital facilities area;
and

(c) A general
description of the library capital facilities to be acquired, constructed,
installed, operated, or maintained in the proposed library capital facilities
area by the proposed facilities district.

24-90-506. Notice of hearing -
disqualification of member of governing body. (1) The governing body, as
soon as possible after the adoption of the preliminary resolution, shall fix by
order the place and time for a public hearing on the resolution, which hearing
shall be held not less than twenty days or more than forty days after the
adoption of the preliminary resolution. Thereupon, the governing body shall
cause notice by publication to be made of the resolution and of the time and
place of the hearing on the resolution. A copy of the notice shall be mailed to
each property owner within the boundaries of the proposed library capital
facilities area at the owner's last-known address as disclosed by the tax
records of any county in which the library district is located.

(2) No member of the governing body
shall be disqualified from performing any duty imposed by this part 5 by reason
of direct or indirect ownership of property within the boundaries of any
proposed library capital facilities area, by reason of relationship to any
person who owns property within the proposed library capital facilities area, or
by reason of ownership of, or employment with, any entity that owns property
within the boundaries of the proposed library capital facilities area.

24-90-507. Hearing - resolution -
when action barred. (1) On the date fixed for the hearing described in
section 24-90-506 or at any adjournment of the hearing, the governing body shall
ascertain, from the tax rolls of any county in which the library district is
located, the total valuation for assessment of the taxable property located
within the proposed library capital facilities area.

(2) Upon the conclusion of the
hearing required by section 24-90-506, if it appears that the library capital
facilities specified in the preliminary resolution pursuant to section 24-90-505
(2) (c) are of the type and kind of library capital facilities that satisfy the
purposes of this part 5, the governing body:

(a) Shall by
adoption of a resolution:

(I) Adjudicate all
questions of jurisdiction;

(II) Designate the
boundaries of the facilities district pursuant to section 24-90-505 (2) (b);

(III) Affix a name
to the facilities district that shall be the name as is specified in the
preliminary resolution pursuant to section 24-90-505 (2) (a) and by which, in
all subsequent proceedings, the facilities district shall thereafter be known;
and (IV) Specify that the facilities district shall have the power to levy ad
valorem taxes in accordance with the requirements of section 24-90-511.

(b) May order that
the question of the organization of the facilities district and other matters as
the governing body deems appropriate, including, without limitation, the
issuance of bonds or other matters for which voter approval is required under
section 20 of article X of the state constitution, be submitted to the
registered electors residing within the boundaries of the proposed facilities
district at an election to be held for that purpose in accordance with the
provisions of articles 1 to 13 of title 1, C.R.S. Unless otherwise provided in
section 20 of article X of the state constitution, such election may be held in
conjunction with a general election or on the election held on the first Tuesday
in November of odd-numbered years.

(3) At an election held under
paragraph (b) of subsection (2) of this section, the registered electors
residing within the boundaries of the proposed facilities district shall vote
for or against the organization of such district and such other matters as the
governing body may deem appropriate, including, without limitation, the issuance
of bonds of the library district or facilities district or other matters for
which voter approval is required under section 20 of article X of the state
constitution. If, upon canvassing the vote, it appears that a majority of the
registered electors voting at such election vote in favor of the organization of
the facilities district, the governing body shall adopt a resolution declaring
the facilities district organized.

(4) If a resolution is adopted
establishing the facilities district in accordance with the requirements of
subsection (3) of this section, the resolution shall finally and conclusively
establish the regular organization of the facilities district against all
persons unless an action, including an action for certiorari review, attacking
the validity of the facilities district is commenced in a court of competent
jurisdiction within thirty days after the adoption of the resolution.
Thereafter, any such action shall be perpetually barred. The organization of the
facilities district shall not be directly or collaterally questioned in any
suit, action, or proceeding.

24-90-508. Recording of resolution
establishing area. Within thirty days after the facilities district has been
declared duly organized, the secretary of the governing body shall transmit for
recording to the county clerk and recorder in each county in which the
facilities district or a part of the facilities district extends a copy of the
resolution of the governing body establishing the facilities district pursuant
to section 24-90-507 (4).

24-90-509. Governing body -
meetings. (1) The board of trustees of the library district that creates the
facilities district, as the governing body of said district, shall constitute ex
officio the board of the facilities district. The presiding officer of the board
of trustees of the library district shall be ex officio the presiding officer of
the board of the facilities district, the secretary of the board of trustees of
the library district shall be ex officio the secretary of the board of the
facilities district, and the treasurer of the board of trustees of the library
district shall be ex officio the treasurer of the board of the facilities
district. The secretary and the treasurer may be one person. The board of the
facilities district shall adopt a seal. The secretary shall keep, in a
well-bound book, a record of all its proceedings, minutes of all meetings,
certificates, contracts, and all corporate acts, which shall be open to
inspection of all owners of property in the facilities district as well as to
all other interested parties. The treasurer shall keep permanent records
containing accurate accounts of all money received by and disbursed for and on
behalf of the area.

(2) The board shall hold meetings, on
notice to each member of the board, which shall be open to the public in a place
to be designated by the board as often as the needs of the facilities district
require. A quorum of the governing body shall constitute a quorum at any
meeting.

24-90-510. General powers of
facilities district. (1) The facilities district has the following limited
powers:

(a) To have
perpetual existence;

(b) To have and use
a corporate seal;

(c) To sue and be
sued and be a party to suits, actions, and proceedings;

(d) To enter into
contracts and agreements, except as otherwise provided in this part 5, affecting
the affairs of the facilities district, including contracts with the United
States and any of its agencies or instrumentalities. Except in cases in which a
facilities district receives aid from an agency of the federal government, a
notice shall be published for bids on all construction contracts for work or
material or both involving an expense of one thousand dollars or more. The
facilities district may reject any and all bids, and, if it appears that the
facilities district can perform the work or secure material for less than the
lowest bid, it may proceed to do so.

(e) To borrow money
and incur general obligation indebtedness and evidence the same by bonds,
certificates, warrants, notes, and debentures in accordance with the provisions
of this part 5;

(f) To acquire,
finance, construct, install, operate, and maintain the library capital
facilities contemplated by this part 5, including all property, rights, or
interests incidental or appurtenant thereto, and to dispose of real and personal
property and any interest therein, including leases and easements in connection
therewith;

(g) To refund any
general obligation indebtedness of the facilities district without an election;
otherwise, the terms and conditions of refunding bonds shall be substantially
the same as those of an original issue of bonds of the facilities district;

(h) To have the
management, control, and supervision of all the business and affairs of the
facilities district and of the acquisition, construction, installation,
operation, and maintenance of the facilities district's library capital
facilities;

(i) To adopt and
amend bylaws not in conflict with the constitution and laws of the state or with
the ordinances of the county or municipality affected for carrying on the
business, objects, and affairs of the governing body and of the facilities
district;

(j) To exercise all
rights and powers necessary or incidental to or implied from the specific powers
granted in this part 5. Such specific powers shall not be considered as a
limitation upon any power necessary or appropriate to carry out the purposes and
intent of this part 5.

(k) To conduct an
election in accordance with articles 1 to 13 of title 1, C.R.S., for any purpose
the board deems necessary or required.

24-90-511. Power to levy taxes.
Subject to the requirements of section 20 (4) of article X of the state
constitution, in addition to any other means of providing revenue for a
facilities district, the board has the power to levy and collect ad valorem
taxes on and against all taxable property located within the boundaries of the
facilities district. The rate of levy to be submitted to the registered electors
for their approval in accordance with the requirements of this section, or, if
such rate is unlimited, shall be specified in the resolution creating the
facilities district pursuant to section 24-90-507.

24-90-512. Determining and fixing
rate of levy. The governing body shall determine the amount of moneys
necessary to be raised by a levy on the taxable property located within the
facilities district, taking into consideration other sources of revenue of the
library district and the facilities district, and shall fix a rate of levy that,
when levied upon every dollar of the valuation for assessment of taxable
property within the facilities district together with other revenues, shall
raise the amount required by the library district and the facilities district
during the ensuing fiscal year to supply funds for paying expenses of
organization and the costs of acquiring, financing, constructing, installing,
operating, or maintaining the library capital facilities and promptly to pay in
full when due all interest on and principal of general obligation bonds,
indebtedness, and other obligations issued by the library district or the
facilities district for the library capital facilities located within the
facilities district. In the event of accruing defaults or deficiencies,
additional levies may be made as provided in section 24-90-513. In accordance
with the time schedule provided in section 39-5-128, C.R.S., the governing body
shall certify to the board of county commissioners of each county in which the
facilities district or a portion of the facilities district lies the rate so
fixed in order that, at the time and in the manner required by law for the
levying of taxes, such board of county commissioners shall levy such tax upon
the valuation for assessment of all taxable property within the facilities
district.

24-90-513. Levies to cover
deficiencies. The governing body, in certifying annual levies, shall take
into account the maturing indebtedness for the current and ensuing year as
provided in its contracts, maturing bonds, and interest on bonds and the
deficiencies and defaults of prior years and shall make ample provisions for the
payment thereof. In case the moneys produced from such levies, together with
other revenues of the library district or facilities district, are not
sufficient to pay punctually the annual installments on its contracts or bonds
and interest thereon and to pay defaults and deficiencies, the governing body,
from year to year, shall make such additional levies of taxes as may be
necessary for such purposes, and, notwithstanding any limitations, such taxes
shall be levied and shall continue to be levied until the indebtedness of the
library district or facilities district is fully paid.

24-90-514. County officers to levy
and collect taxes - lien. It is the duty of the body having authority to
levy taxes within such county to levy the taxes certified to it as provided in
this part 5. It is the duty of all officials charged with the duty of collecting
taxes to collect and enforce such taxes at the time and in the form and manner
and with like interest and penalties as other taxes are collected and, when
collected, to pay the same to the library district or facilities district
ordering its levy and collection. The payment of such collections shall be made
monthly to the treasurer of the library district and paid into the depository
thereof to the credit of the facilities district. All taxes levied under this
part 5, together with interest thereon and penalties for default in payment
thereof, and all costs of collecting the same shall constitute a lien, until
paid, on and against the property taxed, and such lien shall be a lien as for
all other general taxes.

24-90-515. Property sold for taxes.
The taxes provided for in this part 5 shall be included as a part of general ad
valorem taxes and shall be paid and collected accordingly. The sale of
properties for delinquencies shall be conducted in the manner provided by the
statutes of this state for selling property for nonpayment of other ad valorem
taxes.

24-90-516. Governing body can
issue bonds - form. To carry out the purposes of this part 5, the governing
body is hereby authorized to issue bonds of the library district or facilities
district for the purpose of financing the acquisition, construction,
installation, operation, or maintenance of library capital facilities within the
facilities district. The bonds shall bear interest at a rate such that the net
effective interest rate of the issue of bonds does not exceed the maximum net
effective interest rate authorized, payable at such times as determined by the
governing body, and shall be due and payable in installments at such times as
determined by the governing body extending not more than thirty years from the
date of issuance. The form and terms of the bonds, including provisions for
their sale, payment, and redemption, shall be determined by the governing body.
If the bonds are payable from the general ad valorem taxes levied on property
located within the facilities district, the bonds shall not be issued unless
first approved at an election held for that purpose pursuant to section
24-90-507 (3). If the governing body so determines, bonds issued pursuant to
this section may be redeemable prior to maturity, with or without payment of a
premium, but no premium shall exceed three percent of the principal thereof. The
bonds shall be executed in the name of the library district or the facilities
district and signed by the presiding officer of the governing body with the seal
of the library district or facilities district affixed thereto and attested by
the secretary of the governing body. The bonds shall be in such denominations as
the governing body shall determine. Under no circumstances shall any of the
bonds be held to be an indebtedness, obligation, or liability of the
municipalities or counties in which the area is located, and bonds issued
pursuant to the provisions of this part 5 shall contain a statement to that
effect.

24-90-517. Dissolution procedures.
Any facilities district organized pursuant to this part 5 may be dissolved after
notice is given, publication is made, and a hearing is held in the manner
prescribed by sections 24-90-506 and 24-90-507. The dissolution shall be
commenced with a filing by the governing body with the clerk or secretary of the
governing body of a resolution of the governing body approving the dissolution.
After hearing any protest against or objection to the dissolution, and if the
governing body determines that it is for the best interests of all concerned to
dissolve the facilities district, the governing body shall so provide by an
effective resolution, a certified copy of which shall be filed in the office of
the county clerk and recorder in each county in which the facilities district or
any part of the facilities district is located. Upon the filing, the dissolution
shall be complete. However, no facilities district shall be dissolved until it
has satisfied or paid in full all outstanding indebtedness, obligations, and
liabilities issued to provide library capital facilities or until funds are on
deposit and available therefor.

24-90-518. Exemption from taxation
- securities laws. The income or other revenues of the library district or
facilities district, any property owned by the library district or facilities
district, any bonds issued by the library district or facilities district, and
the transfer of and any income from any bonds issued by the library district or
facilities district shall be exempt from all taxation and assessments by the
state.

24-90-519. Limitation of actions.
Any legal or equitable action brought with respect to any acts or proceedings of
the library district or facilities district, the creation of a facilities
district, the authorization or issuance of any bonds, or any other action taken
under this part 5 shall be commenced within thirty days after the performance of
such action or else shall be thereafter perpetually barred.

This portion of Colorado Revised Statutes, reprinted with the permission
of the committee on Legal Services in accordance with section 2-5-118, C.R.S.
is an unofficial publication of Colorado Revised Statutes.